FREIGHT SPACE

Hauraki Plains Gazette, Volume 50, Issue 3056, 31 March 1941, Page 6

FREIGHT SPACE

SCARCITY IN AUSTRALIA

EXPLANATION TO PRODUCERS

The shipping freight space scarcity is causing lower prices for baconer pigs because exporters, faced with the probability of having to keep carcases in store for an indefinite period, are unable to estimate the true value of the pigs they purchase and must buy on a conservative basis, says an Australian paper.

This was stated recently by Mr Ross Grant, veterinary officer of the Department of Commerce. Holding pigs in store for a long period increased exporters’ costs considerably. The approximate cost of storage, after 28 days, of a bacon carcase of average weight was 5d a carcase a week, said Mr Grant. Exporters were also faced with the fact that a considerable amount of capital, including the purchase price of pigs and treatment costs, was lying idle. As the British meat contract was on a f.o.b. basis, exporters were unable to realise on their pigs until the carcases were placed on the ship. Producers, said Mr Grant, must realise that some dislocation of trade during war was inevitable. He urged them not to become unduly discouraged, as any improvement in the shipping position would react favourably on the market.